No Need to Panic About the Deficit - Yet

 

The economy is in a downfall.  Federal and provincial governments have shut down the economy to contain a deadly virus.  Businesses have closed, jobs have been lost and unemployment has soared.

This year, real GDP could fall by 10 to 15%, or even more, which is larger than the decline in output during the Great Depression. Although some social isolation restrictions are being lifted, at this time, given all the uncertainty, no one really knows how large the decline in output will actually be.

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